What is a Mortgage?

A mortgage is a loan provided by a lender (usually a bank) with the title to a property or several properties held as security for repayment of the loan on the conditions set out in the loan documents. Mortgages are subject to interest being repaid in addition to the loan amount, and that interest can be fixed at a certain rate for a certain period or be variable and subject to market fluctuations. There are both advantages and disadvantages of fixed and variable loans, and we encourage you to contact your accountant or financial planner to determine which loan type is most suitable for your circumstances.